Global Business Environment: Key Issues and Pestle Analysis

This report discusses recent changes in the luxury watch market, key issues faced by FTSE, and a Pestle analysis of the company. Learn about political, economic, social, technological, legal, and environmental factors that affect the growth and performance of the firm.

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Recent changes in the market......................................................................................................3
Key Issues faced by the company................................................................................................4
Pestle Analysis.............................................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................1

INTRODUCTION
Global business environment is consist of international interaction that is out of the
business control and that influence operations of business (Hrechyshkina and Samakhavets,
2019). Moreover, it affects the ability of the company that are established at different countries.
The present report is based on FTSE that is a British retailer of Swiss watches with the 16 store
in UK and headquarter in Braunstone. Furthermore, the study will discuss on key issues faced by
the company and Pestle analysis of company.
MAIN BODY
Recent changes in the market
The luxury watch market has been going through many changes such as technological.
Every organization is trying to adapt to the new changes in order to sustain in the business
environment (LUXURY WATCH MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND
FORECASTS (2021 – 2026), 2021). The luxury market was valued at 23.623 million in 2020 but
due to pandemic this company has face the downfall as the demand has been decrease because of
various restriction impose on trade.
Basis Value volume
Shipment 22% 33%
Export 9% 61%
In 2020 demand and supply
Moreover, the company has to match to the new market trend such as classic watch and need to
use high quality products such as premium material and precious metals in order to attract more
and more customer.

Key Issues faced by the company
 Political uncertainty
 E- commerce challenge
 Pandemic
Pestle Analysis
Pestle analysis allows the company to identify the external threats that can affect the
growth and performance of the firm. Moreover, it includes political, legal, environmental,
technological and economic factors that hinder the abilities of business.
Political: This factor include the government policies implemented by government such as
restriction on trade etc. the company has faced the issues in the market of china because of
corruption impact (Pant, 2019). Along with this, there were political unrest in the key market of
Hong Kong. In addition, to this Swiss Watch has also faced downfall in total sales of the due
to yellow protest in the market.
Economical: The organization faced the global recession due to pandemic that has adversely
affected on the growth of the firm in the competitive market.
Social: The factors such as customer are demanding smart watch compare to luxury berceuse it
has less features and high price.
Technological: The Swiss Watch need to develop advance technology in order to gain the
competitive advantage in the market. Moreover, company should make use of digital marketing
such as SMM in order to identify the taste and preferences of their audience as well as new trend
of market.
Legal: This factor mainly include the law suits and policies made by the government in order to
maintain peace in the society (Pan, Chen and Zhan, 2019). The company has faced lawsuits
related to the trademark as well as legal battel with various organizations. Moreover, Swiss
Watch is protecting the privacy of their customer.
Environmental: This factor consists of weather, climate and environmental policy. Swiss
watch can initiate the sustainable policies such as CSR and environmental practices for
developing the society (Jafari and Othman Soleiman., 2020).

CONCLUSION
From the above report it can be concluded that global business environment is an
international market where various countries operates. Furthermore, the report has summarized
about the recent changes in the watch market as well as Pestle analysis of company.

REFERENCES
Books and journals
Hrechyshkina, O. and Samakhavets, M., 2019. Changing business environment in
Belarus. Journal of Geography, Politics and Society. 9(1). pp.1-11.
Jafari, H. and Othman Soleiman, K., 2020. Assessment of effective environmental factors in oil
and gas industry policies using PESTLE & SWOT analysis (case study: Kurdistan,
Iraq). Environmental Sciences. 18(3). pp.134-151.
Pan, W., Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering. 35(1). p.05018013.
Pant, P., 2019. SWOT analysis: A powerful tool of strategic competitive management
effectiveness. Adhyayan: A Journal of Management Sciences. 9(02). pp.31-37.42-50.
Online
LUXURY WATCH MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS
(2021 – 2026)., 2021. [Online]. Available through <
https://www.mordorintelligence.com/industry-reports/luxury-watch-market>.
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